“I am pleased to announce that the National Assembly has approved crucial changes to the law of the National Commission for Digital Assets (CNDA), granting us the power to regulate bitcoin (BTC) companies in our country,” as stated yesterday, Juan Carlos Reyes, president of that commission from El Salvador.
Therefore, the CNAD will from now on become the in charge of supervising companies that operate with bitcoin and other crypto assets within the country, integrating risk analysis designed by experts with deep understanding of both the technology and the market, as Reyes pointed out, through his social networks.
With this new regulatory model, which will be implemented in the coming weeks, El Salvador establishes mandatory registration for bitcoin service providers (exchanges, custodians and payment processors), which must implement standards for the prevention of money laundering, protection of client assets and cybersecurity measures.
The reform, initially presented by the Minister of Economy, María Luisa Hayem, establishes that through the National Digital Assets Commission, new obligations be demanded from the platforms that manage cryptocurrencies.
This contemplates the application of a series of risk management policies and compliance with technical regulations issued by the CNAD. All this, in accordance with the recommendations made by the International Financial Action Task Force (FATF), which contemplate the application of the so-called “Travel Rule” along with other regulations to prevent crimes with cryptocurrencies.
Changes for reasons of “efficiency”, according to CNDA spokespersons
During his speech in the legislative chamber, the director of the CNDA, Miguel Serafín, emphasized that the proposed changes “are exclusively for reasons of efficiency.” And among the notable reforms mentioned the policies designed for cryptocurrency service providers to safeguard customer assets.
The reforms also stipulate the need to maintain accurate records that reflect the financial situation of suppliers and the relevant information of the transactions carried out.
Likewise, the CNDA will have the authority to issue preventive measures in order to preserve the stability of the bitcoin ecosystem and other digital assets, based on technical reports. It also establishes the prohibition of operating with digital assets without due authorization from the main regulator of the cryptocurrency industry.
During the discussions in the Assembly, the legislators stressed that these initiatives pursue the ambitious purpose of turning El Salvador into an attractive center for new markets. “This will generate economic growth, offering employment opportunities for the population and opening doors to Salvadorans and foreigners who wish to invest in the country,” the politicians stated.
With these measures, El Salvador hopes to strengthen its position as a leader in the field of digital assets in the region, promoting a regulatory environment that favors innovation and investment, as also highlighted by legislators.
This reform in the regulatory framework for the digital assets industry that is growing in El Salvador, takes place at the precise moment in which the Director of Communications of the International Monetary Fund (IMF) Julie Kozack, who admitted that bitcoin continues to be “key » in the negotiations that are underway to sign an agreement with the Central American country, as previously reported by CriptoNoticias.
